<p>
From the above strategy we can see that the share price of IBM had been increasing during the backtesting period from January 2016 to June 2016. The drawdown is small -- the Covered Call strategy performs better than a simple buy-and-hold strategy of underlying stock in a bearish market. The benefit of Covered Call is that you keep the premium, any gains from the underlying price increase up to the strike price, and accrued dividends during the stock holding period. In a bullish market, however, you miss out on any gains if the underlying stock price breaches the strike price.
</p>
